Composition rate

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This discussion concerns a homeopathic doctor operating Gupta Homeo Kendra, who is currently paying 1% GST under the composition scheme on medicine sales. The client's income is derived from medicine sales, not consultation fees. The query questions whether this GST approach is correct and if the GST number can be surrendered given sales below the ₹40 lakh threshold. Advice suggests surrendering the GST number is possible if all sales are local and invoices are solely for medicine, not including consultation charges.

VIPIN GUPTA

VIPIN GUPTA (Querist)
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01 September 2020 Dear Sir,
One of our client is having a homeopathic medicine shop in the name of Gupta Homeo Kendra. He himself is a homeopathic doctor. The main business of his is selling of homeopathic medicine. If any patient comes to see him he does not charge any fees but his fees is included in his sales of medical bills which he issues. Previously in VAT regime he was showing all his receipts from the sale of medicine and all assessment under vat are done on the basis of the sale of medicine. and in GST we are paying tax under composition scheme @ 1% on sale of goods. Our receipt are average 21-23 lacs a year. My question is are we doing it correctly. Can we surrender our GST number as our sale is below 40 lacs

Lekhraj sood

Lekhraj sood (Expert)
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01 September 2020 If your sales are within the state only then you can surrender the GST registration.

VIPIN GUPTA

VIPIN GUPTA (Expert)
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01 September 2020 All sales are local , I am confused can department contest that the person is doctor all his sale are not sale of goods but his professional receipts

Lekhraj sood

Lekhraj sood (Expert)
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01 September 2020 If you are selling at MRP or below, then the question does not arise.Also if the invoice is only for sale of medicines then the question of consulting fee can not come.It will depend on facts of the case.

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